Australia has failed to mitigate transport-related greenhouse gas emissions for almost three decades, a report has found.

The report, released by the Climate Council on Thursday, revealed that transport-related emissions have risen 62.9 percent since 1990 and 3.4 percent in the 12 months between December 2016 and December 2017.

According to the report, emissions from transport have risen at a higher rate than from any other source since 1990.

Transport was the nation's second largest source of greenhouse gas emissions, accounting for 18 percent of the total, after electricity (33 percent).

"Australia's transport emissions or transport greenhouse gas pollution levels have been steadily rising and are projected to continue going up," the report said.

"Factors such as population growth have led to a higher number of cars on the road, while increased demand for freight is also driving up truck emissions.

"Domestic air travel continues to increase, leading to an increase in aviation emissions."

The council found that "the absence of credible and comprehensive climate and energy policy" was largely at fault for the rise.

The report found that 87 percent of Australians travelled to work, school or university by car and that congestion was costing the Australian economy 16 billion Australian dollars (11.4 billion U.S. dollars) every year.

"To tackle climate change, Australia needs to rapidly roll out a fleet of sustainable transport solutions like high quality public transport, cycling and walking infrastructure as well as renewable powered vehicles in the form of electric bicycles, cars, trains, trams and buses," it said.

Authors Petra Stock, Will Steffen, Greg Bourne and Louis Brailsford condemned Australia for being "one of just a handful of Organization for Economic Co-operation and Development (OECD) countries without greenhouse gas emissions standards for vehicles."